Promissory Note Fraud
Quiz by Emil Pacic
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10 questions
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- Q1What is a common type of financial fraud involving a fake promise to pay a certain amount of money?Identity TheftCredit Card FraudTax EvasionPromissory Note Fraud30s
- Q2What is the term for the act of signing someone else's name on a promissory note without their permission?Fraudulent CheckCounterfeit CurrencyBlank EndorsementForged Signature30s
- Q3Which of the following is NOT a red flag for potential promissory note fraud?Lack of documentation or official paperworkHigh interest rates offered on the notePressure to invest quickly without time for due diligenceObtaining the note from a reputable financial institution30s
- Q4What is a common warning sign of promissory note fraud?Stable investment track recordHigh returns with low riskTransparency in financial documentationRegular communication from the issuer30s
- Q5What should you do if you suspect you are a victim of promissory note fraud?Ignore the situation and hope it resolves on its ownInvest more money to try and recover your lossesReport it to the appropriate authorities and seek legal adviceKeep the suspicion to yourself and try to resolve it independently30s
- Q6What is the term used to describe the practice of using funds from new investors to pay returns to earlier investors, rather than from legitimate profits?Stock Market InvestmentReal Estate DevelopmentPonzi SchemeMutual Fund Portfolio30s
- Q7What is the term for a fraudulent practice where the issuer of a promissory note uses new investments to pay interest to existing investors?IRA AccountSavings BondPonzi Scheme401(k) Plan30s
- Q8What is a common tactic used in promissory note fraud to lure investors?Promising unusually high returns with minimal riskProviding detailed investment prospectus for reviewOffering moderate returns in line with market averagesDisclosing all financial risks involved upfront30s
- Q9What is the term for the illegal practice of using funds from new investors to pay returns to earlier investors in a deceitful investment scheme?Mutual Fund PortfolioPonzi SchemeStock Market InvestmentReal Estate Development30s
- Q10What is a common tactic used by fraudsters in promissory note schemes to create a facade of legitimacy?Seeking regulatory approval before offering the investmentFalsifying documents and financial statementsEngaging with reputable financial advisorsProviding complete transparency on investment risks30s